Recently my friends staying in USA started pressing me to find out real estate rates in bangalore and mysore. I was quite surprised by this sudden barrage of interest to buy property. Subsequently, I understood that this sudden excitement was due to weakening rupee value.
Yes! Its a very good time for NRI's to invest not just in bangalore , but also in other parts of India. In bangalore it is a fantastic time to buy as rates have been flat for almost 14 months now.
Lets look at it from NRI perspective:
Last March 1 US dollar was costing close to 45 Rupees. Today after 1 year the exchange rate for a US dollar is around 50 Rupees approximately. So close to 11% fall. Advantage of buying now:
i) You are getting properties at almost 11% discount
ii) Rates in bangalore have been flat for almost 1 year.
iii) They can book profit once rupee strengthens.
iv) They can book profit as rates in bangalore starts to move up
Some broker are making nice profits while booking a deal for NRI's of late.
Any one wanting to buy property in bangalore need to decide whether its for investment purpose or not. If the transaction is used for investment. Then they have two choices : Land and Flats.
Land : The rates here only appreciates. The risk is with buyer not in bangalore it becomes very tricky. Buyer would not be able to keep an eye on his site.
Apartment : As we all know apartment rate depreciates at -2% every year from market rate. So if the plan is to buy and hold for a few years. Then it is unwise.
If the plan is to invest in launch phase and sell once construction is complete, its fine. You stand to gain.
The one issue NRI buyers would face is if rupee is going to further fall, then it offers more discount for them. Its a bit like buying equities. In a falling market to determine the bottom level is quite difficult.
Most of the queries which I got from my NRI friends was related to buying land. So they wanted to know about gated community , BBMP approvals, BIAPPA approvals , Plot dimension and location.
A lot of enquiries were regarding plots beyond Ecity. That's largely because of the way these plots are being marketed. I am personally not too positive about this area with rumors of ground water pollution due to BIOCON.
Also visit the site : http://articles.timesofindia.indiatimes.com/2011-12-23/other-news/30550600_1_commercial-property-office-space-nris
Yes! Its a very good time for NRI's to invest not just in bangalore , but also in other parts of India. In bangalore it is a fantastic time to buy as rates have been flat for almost 14 months now.
Lets look at it from NRI perspective:
Last March 1 US dollar was costing close to 45 Rupees. Today after 1 year the exchange rate for a US dollar is around 50 Rupees approximately. So close to 11% fall. Advantage of buying now:
i) You are getting properties at almost 11% discount
ii) Rates in bangalore have been flat for almost 1 year.
iii) They can book profit once rupee strengthens.
iv) They can book profit as rates in bangalore starts to move up
Some broker are making nice profits while booking a deal for NRI's of late.
Any one wanting to buy property in bangalore need to decide whether its for investment purpose or not. If the transaction is used for investment. Then they have two choices : Land and Flats.
Land : The rates here only appreciates. The risk is with buyer not in bangalore it becomes very tricky. Buyer would not be able to keep an eye on his site.
Apartment : As we all know apartment rate depreciates at -2% every year from market rate. So if the plan is to buy and hold for a few years. Then it is unwise.
If the plan is to invest in launch phase and sell once construction is complete, its fine. You stand to gain.
The one issue NRI buyers would face is if rupee is going to further fall, then it offers more discount for them. Its a bit like buying equities. In a falling market to determine the bottom level is quite difficult.
Most of the queries which I got from my NRI friends was related to buying land. So they wanted to know about gated community , BBMP approvals, BIAPPA approvals , Plot dimension and location.
A lot of enquiries were regarding plots beyond Ecity. That's largely because of the way these plots are being marketed. I am personally not too positive about this area with rumors of ground water pollution due to BIOCON.
Also visit the site : http://articles.timesofindia.indiatimes.com/2011-12-23/other-news/30550600_1_commercial-property-office-space-nris
Can you post more on the land options and also reliable ways to pursue it?
ReplyDeleteThanks!
That’s a great blog! Great focus on Indian real estate industry. Your writing style is truly informative. Just wanted to buzz in about my builder GGproperties. I am happy with flat layout and amenities, although construction did take time just like any other Indian builders due to climatic conditions, and other unavoidable delays. Plus, heard a lot of ill comments about such an established 16 year old builder- wonder why …when they are far better than most of the other property developers, I’ve seen in the market. Refer GoldenGate Properties
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